Overview
WNG Capital is an experienced aircraft investment manager dedicated to investing in mid-life and older narrow-body commercial aircraft manufactured by Airbus and Boeing. WNG team members have extensive aircraft marketing and technical skills, legal expertise, and risk management capabilities. WNG’s investment philosophy is founded on combining the disparate skills and experience of our team to develop and execute comprehensive management plans for each investment.
Our investment philosophy focuses on realizing available value in aircraft technical conditions, contractual cash flow, and minimization of market risk, not financial engineering. We invest in mid-life and older narrow-body commercial aircraft requiring lessee transition in the near to medium term. Our investments utilize our cumulative skills, experience, and market knowledge to realize “hidden value” through successful lease transition and ultimate sale of aircraft and aircraft components.
WNG Capital investors enjoy a combination of high current income from lease cash flow, predictable investment duration, and low residual risk. WNG underwrites its aircraft investments using airline historic utilization, current aircraft technical condition, and forecasted future airline use. This detailed underwriting provides WNG with a part-by-part valuation of each aircraft, and when incorporated with airline maintenance obligations, a reliable base case investment valuation. Deviations from forecasted airline utilization provide WNG with an early warning of possible airline operational issues and an opportunity to work with our airline customers to resolve issues before they become problems.
Our airline lessees enjoy the benefits of working with an experienced, knowledgeable, and well-financed operating lessor. Since 2009 WNG has invested in 92 used commercial aircraft and 15 engines and established mutually beneficial relationships with 55 airlines. WNG strives to work with our lessees to provide lease terms and structures meeting their evolving fleet and financial requirements.
WNG employs a hands-on asset management model, including regular visits with our lessees and inspections of our aircraft. We strive to build long-term, mutually beneficial relationships with our airline customers. Our proven investment strategy is founded on four essential elements:
(i) Develop a comprehensive cash flow forecast for each investment
(ii) Actively manage each investment to maximize cash flow over its economic life
(iii) Assign conservative residual values and value each life-limited component at a discount to market values
(iv) Manage our portfolio to minimize exposure to individual lessees, geographic markets, and concentrations of lease maturities
In following these four principles, WNG avoids surprises and focuses on maximizing returns for our investors while meeting the requirements of our airline customers.
WNG’s investment focus is on Boeing 737 NG and Airbus A320 CEO families of aircraft. These are the largest fleets of aircraft ever produced, representing 47% of all commercial jet aircraft in operation, and represent the core fleets of airlines around the globe. WNG airline customers operate in 30 countries in North, Central, and South America, Europe, Asia, and Africa.